Former Nakheel chief executive files lawsuit
By Helen Wright24 June 2011
Dubai property Developer Nakheel faces a lawsuit from its former chief executive, Chris O'Donnel, who filed the breach of contract claim after leaving the company at the start of June.
Nakheel - a subsidiary of state-owned holding company Dubai World - has been responsible for major projects including the Palm Jumeirah and The World artificial islands projects in Dubai.
Mr O'Donnel left his position on 8 June after a five-year contract and filed the lawsuit on 22 June with the Dubai World Tribunal - a special body set up in 2009 to handle lawsuits relating to Dubai World's financial restructuring.
In March last year, the government of Dubai announced a US$ 9.5 billion bailout package to rescue Dubai World. The cash injection saw its subsidiaries, including Nakheel, put restructuring plans to their creditors.
Mr O'Donnel oversaw the financial restructuring of Nahkeel, including the company's efforts to reach agreements with its creditors. The Dubai World Tribunal will not release further details of the lawsuit until Nakheel formerly responds.